It does to convert from Bitcoin to Fiat currency.

That conversion gets blocked in an entire country/currency and its effectively useless unless you travel.

That seems to imply that there are no grey or black markets for currencies. This is contrary to what has been observed in history and in some countries today.

> That seems to imply that there are no grey or black markets for currencies. This is contrary to what has been observed in history and in some countries today.

Grey and black market currencies exist but the exchange rate is very painful. Its mostly only viable when the fiat currency is unstable (or in the black market) for that reason.

Either way, its largely useless in the country it has been grey/black market'd and they are relying on their ability to convert it elsewhere.

That doesn't negate the damage though. Requiring a grey or black market to use the currency in a nation of economic significance restricts bitcoin's utility. This will be a value hit when competing against any potential currency that can overcome those hurdles.

localbitcoins was a thing long before you could use exchanges in lots of countries.

> It does to convert from Bitcoin to Fiat currency.

Why do that if everyone accepts bitcoin?

And in any case, no you don't. Not as long as cash exists.

Its not technically possible at this time for this to be true.

It is not technically possible to trade physical cash bills for bitcoin? I do it all the time...

You are claiming a situation where 100% of merchants take bitcoin (i.e. everyone) and the scale required is beyond bitcoin by several orders of magnitude.